Elon Musk Loses $34 Billion in a Single Day Amid Feud with President Trump
Tesla Stock Crash Triggers Record Wealth Loss
Elon Musk, CEO of Tesla and the world’s richest man, saw his net worth drop by a staggering $34 billion in just one day after Tesla shares plummeted by more than 14% on Thursday, June 5, 2025.
This sharp market reaction follows a heated public feud between Musk and U.S. President Donald Trump, which has rattled investors and raised concerns about political retaliation against Musk-led companies.
The Musk–Trump Face-Off: What Happened?
The clash began when President Trump unveiled his “One Big Beautiful Bill” a sweeping policy plan aimed at cutting environmental regulations and removing subsidies for electric vehicles (EVs). The bill would directly impact Tesla, the leading EV manufacturer globally.
Musk responded on X (formerly Twitter), accusing the Trump administration of sabotaging innovation and “bowing to fossil fuel billionaires.” In return, Trump threatened to “review federal contracts” and “revoke unfair EV tax breaks,” appearing to target Musk’s businesses specifically.
Market Panic: Tesla Stock Suffers, Musk’s Wealth Nosedives
Investors quickly reacted to the political uncertainty, dumping Tesla stock in large volumes. The resulting 14% drop in Tesla’s market cap wiped out over $150 billion from the company’s valuation.
According to Bloomberg’s Billionaires Index, Musk’s personal stake in Tesla led to a $33.9 billion loss, making it the second-largest single-day wealth drop in history after his own 2021 loss during a Twitter-related selloff.
Despite the setback, Musk remains the world’s richest man with an estimated fortune of $335 billion.
What This Means for Tesla — and the Tech World
Political risks are nothing new for Elon Musk, but this level of direct conflict with a sitting U.S. president has alarmed Wall Street. Analysts warn that if Trump’s threats materialize, such as cutting subsidies or federal contracts Tesla’s bottom line could be hit even harder in the coming months.
Meanwhile, supporters of Musk argue that the attack reflects Trump’s efforts to appease oil and gas lobbyists ahead of the 2026 midterm elections.
Looking Ahead
The fallout from this feud is likely far from over. Musk has hinted at taking legal action if the Trump administration follows through on economic retaliation. In the meantime, the business world watches closely as two of its biggest power players square off, and Tesla shareholders brace for more volatility.
